SML - Synlait Milk Ltd

[sb9]

I think SML has already talked to Mr Ye and tried to find a practical solution, then found that he is so stubborn that settling the matter may not be possible. In that case, SML bringing the case up to the Supreme court might be the last practical solution for them. Also unless Mr Ye has purchased the land and doesn't want to settle the matter for the other reason which in case SML will anyway need to abandon the factory, they may be able to come to the practical solution before the Supreme court decision.

It is risky, but SML doesn't seem to have many options available now.

Yep, get a feeling that's what made SML to turn to Supreme court after failed negotiations with Mr Ye to come to some sort practical solution. And now SML lawyers will have all those business cases along with macro economic issues to prove their point.

May be Winnie can help them (SML) out a bit

[BigBob]

That is a very high risk tactic. What if NZIPL seek and are granted an injunction forcing SML to cease all work until the matter is resolved through the courts - which could be a year away.

And what would be the cost of damages incurred by SML of such an injunction if NZIPL lose in the SC...?

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[pg0220]

No reason for them to do so when an Appeal court decision has gone against them.

You are right. They should have settled the matter instead of bringing that to the high court.

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[pg0220]

Ye, who will only talk through a spokesman, is also behind a plan for a large agri-tourism development on his land, which borders Waikato River. The plan provided for a 250-room hotel and a showcase farm, and earthworks for the project were due to start next month, the spokesman said. He previously told the Herald that Ye's investment on the land could add up to $1 billion over time.

Just wondering, would this plan still fall under the definition of grazing, lifestyle farming and forestry?

https://www.nzherald.co.nz/business/...ectid=12238335

[Beagle]

Would there be damages? the covenant issue is one between NZIPL and STL. SML has proceed building knowing there are outstanding issues - so maybe the risk for that decision falls solely on their shoulders. And if not it might fall on STL's shoulders - but how deep are their pockets.

To a casual observer the GARGANTUAN SIZED PINK FONT and the text of the official NZX release would tend to indicate this super politically correct and inclusive company has heaps of options and is in a very strong position and will keep the development going on track and on time.

One can only speculate at size and colour of the font in the headline announcement that is probably forthcoming when they finally announce to the market they have exhausted all options and are abandoning the site. The consequent effect on the share price will be extremely ugly...mark my words.

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[dreamcatcher]

Interesting to note the councils proposed district planning of the Ye/Synlait properties

"Further inquiries by the Herald showed Ye, also known as Qing Ye, made a submission to the Waikato District Council in October to rezone his 148ha properties residential. His land is currently farmed.

The council's proposed district plan wants to rezone Ye's land rural and the land Synlait has built on to heavy industrial."